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Our luxury is -- health insurance

February 7th, 2008 at 08:43 pm

My biggest expense each month is health insurance as I do not receive any health ins from my part time job.

I have a Blue Cross plan with a $750 deductible; it has an excellent Rx plan; I chose the plan because doc visits are $20 co-pay (the deducible doesn't factor into this so it is $20 co-pay even if one hasn't met the deductible). I have a child and want to be able to take him to the doctor whenever necessary for $20. It's a peace of mind thing. This policy costs $397 a month.

Our dental ins only covers normal cleaning and x rays. However, my dentist allows me to make payments without any interest, so we have access to dental care.

We do not have vision coverage; we spend about $600 a year on eye docs and contacts.

Everytime I think that a cheaper med policy would save money, I think that it would also be giving up the peace of mind that my plan offers. We only need to go to the doc a few times a year, mercifully.

That is our largest bill.

10 Responses to “Our luxury is -- health insurance”

  1. compulsive debtor Says:

    So now I'm curious. How come you don't pay off your debt with your savings? (And, I'm not trying to start anything. I'm seriously just wondering. If my debt were as small as yours and I had savings like yours -- and assuming, of course, that I weren't a compulsive debtor -- I would pay it off.)

  2. Nancy Says:

    Good question! I am planning to pay off the VISA and the Target card next week when I am paid; these are my only two credit cards.

    I have been thinking of paying off the student loan in a fell swoop. At 7%, I don't worry about it. I even know what it was spent on.

    Now the other VISA, which is closed, really fries me. After my husband died, I discovered that he had this card and that I was on the account, so I got stuck with it, much to my suprise, and I assume I keep it around as part of general unfinished business and all.

    Good question.

  3. merch Says:

    $397 is cheap. My Blue Cross plan is $1,258 for a family of 4. And, I too pay for my health care.

  4. scfr Says:

    We're self-employed so also pay for our own health insurance. I recently switched to a HDHP (High Deductible Health Plan) combined with HSA (Health Savings Account).

    I agree that peace of mind knowing you're covered is priceless. Good health insurance is a much better use of money than any consumer doodad.

    P.S. - Emotional issues aside, stricly from a numbers standpoint it seems to make sense to pay off the debt. As far as the student loan, compared to current savings rates (which are dropping like stones) 7% is pretty high.

    And as far as the emotional issues, this is an awfully supportive community, so if you do decide to pay off your late husband's Visa, we'll be here to cheer you on!

  5. Ima saver Says:

    I agree, I think you should pay off all the credit cards also. It is a shame that you are stuck with a card you did not even know about, but I know that is how it works. I often open a new credit card to get the rewards and I always put my husband's name on it and he never has to sign anything.

  6. Carolina Bound Says:

    SCFR -- may I ask who carries your HDHP? I'm thinking I may need to switch next year.

  7. Nancy Says:

    merch: thank you for the comparison. I don't have any other frame of reference. The peace of mind this policy gives me is worth the premium, and while I may seek out an alternative when my son starts college (possibly a student plan for him?), this plan suits our needs.
    It seems as though the peanut gallery is pointing to the interest I am paying as a more sensible way to save.

    Ima: yes, I am sure that is how my name wound up on the account; because of that, it did not go into the debts of his estate.

  8. scfr Says:

    CarolinaBound - Check out my blog --- Did a new entry, just for you.
    NancyInADaze - So sorry about "highjacking" your blog!!!

  9. monkeymama Says:

    I know what you mean. We paid about $700/month last year for the peace of mind. With 4 of us. We're all healthy, but it doesn't take much to go through a high deductible.

    The dental bills I don't sweat, they are pennies and we can cover them. Self insurance is fine. (certainly compared to medical bills).

    Our mortgage is slightly higher than our medical bill, but not for long, at this rate. IT is our luxury too. I know we could settle for much less, but I am not sure it would put us any better off.

    Anyway, our plan offered a HDHP this year that was cheaper as a whole than our $50 copay plan was. Pretty much no out of pocket after the deductible. Last year our out of pocket was still rather large after the premiums and large copays. So, phew, breathed a sigh of relief this year. Not counting on it, but if we don't use our deductible, we may gain some traction. Our insurance premiums have been going up 10% - 40% annually otherwise.

    In the past the HDHP looked like a huge risk to me. But they are becoming way more favorable with time.

  10. HelpMeFriend Says:

    I suppose I should be more thankful. I have no dental or vision coverage for our family, but we don't have any problems. I am sure that I could find a place to do a yearly check on my boys that is reasonable; as for our vision, we should be 20/20. Be thankful for what you have. I am now.

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